Appili Therapeutics has announced a strategic alliance with AiPharma to advance the global development of Avigan/Reeqonus (favipiravir).
Avigan/Reeqonus is a broad-spectrum oral antiviral, which is currently being assessed by Appili and its global consortium of partners for the potential treatment of Covid-19.
Last week, Appili also completed patient enrolment for Phase III PRESECO trial to evaluate Avigan/Reeqonus for a potential Covid-19 treatment.
Both the companies have signed a strategic equity transaction to create minority positions in each other’s businesses and participate in each other’s economic interests.
Appili Therapeutics CEO Armand Balboni said: “COVID-19 continues to be an immense health threat with little relief in sight. The world needs safe and effective oral antivirals that can help alleviate the threat of COVID-19, and I believe Avigan/Reeqonus has the potential to change the trajectory of this pandemic.
“This partnership will help us further streamline activities and move quickly following the PRESECO readout to key clinical, regulatory and commercial milestones.”
Global Response Aid (GRA), a 50-50 joint venture with Agility, is one of AiPharma’s portfolio companies.
It is also a member of the consortium, which is focused on the international development, commercialisation and distribution of Avigan/Reeqonus.
The company is also entitled to receive 50% of the net profits obtained from the worldwide sales of Avigan/Reeqonus (outside of Japan, China and Russia) through its participation in the consortium.
The consortium also includes FUJIFILM Toyama Chemical, which is the original developer of Avigan/Reeqonus.
Under the equity transaction, AiPharma will receive the same number of Class A common shares of Appili equal to 24% of issued and outstanding Appili shares immediately before the definitive agreement.
The company will also have certain investor rights that include certain consent rights, pre-emptive rights, and registration rights.
The transaction, which is conditional upon obtaining certain third party consents and receipt of final TSX approval, is expected to be concluded in the fourth quarter of this year.